Country Club Hospitality & Holiday Limited (CCHHL) will become debt-free in the next two quarters, its Chairman and Managing Director Y. Rajiv Reddy said.
“We have reduced our outstanding debt from ₹600 crore to less than ₹60 crore under extraordinary circumstances, as our revenue had declined by more than 50% during the COVID period,” he added.
In the last three to four years, CCHHL reduced its debt by disposing of 12 medium-sized properties in India for approximately ₹240 crore and one property in Dubai for ₹300 crore. CFO M. Ram Kumar said that these assets are lying idle.
According to him, CCHHL will repay the loan by Q1 FY24 and this will help them start saving Rs 30-40 crore cash from the next quarter, which would otherwise be used to pay bank interest.
“The next phase is very challenging. We are going to focus on improving the activities of the club and at the same time foray into the real estate business, which is our core strength. lakh square feet of land,” Mr. Reddy said.
CCHHL has drawn up plans to double its membership from half a million to one million in the next four to five years through organic and inorganic routes.
Presently, CCHHL has a network of 30 clubs and resorts and 140 affiliations in India and abroad. It plans to add another 30 clubs and 100 more franchises. The firm is cautious about overseas expansion and will take a decision after two quarters, Mr. Reddy said.
Mr Reddy also said that he was planning to set up mini-golf courses in Bandipur and Tumakuru, and Kolad, Maharashtra, to boost tourist arrivals at his club. It will be ready in two years at a cost of about ₹ 25 crore.
On expanding the market, he said that they would explore the North, North East and West regions as well as a few more locations in the South.
“Last year, we did a turnover of around ₹60 crore and in the next two financial years, we are expecting to reach ₹90 crore and ₹150 crore respectively,” Mr. Kumar said.
He also said that he has repaid all term loans with public sector banks except two small loans from Punjab National Bank and has no other dues.